Chapter 6 Thinking Like a Modern Economist

Chapter 6 Thinking Like a Modern Economist - Chapter 6:...

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Chapter 6: Thinking Like a Modern Economist Supply and demand is not what holds modern econ together, modeling is the glue . Model – a simplified representation of the problem or question that captures the essential issues. Building blocks refer to the assumptions of a model. The structure of a model is the form it takes – verbal, graphical, or algebraic. Heuristic models are models that are expressed informally in words. Modern economists are economists who are willing to use a wider range of models than did earlier economists Inductive approach is an approach to understanding a problem or question in which understanding is developed empirically form statistically analyzing what is observed in the data. Deductive approach is an approach that begins with certain self-evident principles from which implications are deduced (logically determined) o Used mainly by earlier economists Traditional economists are economists who study the logical implications of rationality and self-interest in relatively simple algebraic or graphical models such as supply and
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This note was uploaded on 02/23/2011 for the course ECON 2010 taught by Professor Moonjung during the Spring '09 term at UVA.

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Chapter 6 Thinking Like a Modern Economist - Chapter 6:...

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